CFO Pulse Survey - Korn Ferry · The CFO Pulse Survey asked a variety of questions, ranging from...
Transcript of CFO Pulse Survey - Korn Ferry · The CFO Pulse Survey asked a variety of questions, ranging from...
CFO Pulse Survey2013
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Introduction
Korn/Ferry International’s Chief Financial Officer Center of Expertise surveyed 86 CFOs tracked in the *KF1000. The CFO Pulse Survey asked a variety of questions, ranging from talent development and succession planning to regulatory changes and company growth, to determine the foremost issues facing CFOs today and to create a baseline of CFO sentiment in this post-recession era.
Here we have aggregated top CFOs’ opinions on the key business issues impacting their companies and jobs, providing us with a pulse of what is driving financial decision-making in the C-suite.
Managing the most critical and fundamental business asset—capital—makes the CFO role one to watch for overall business conditions. Knowing what motivates them, what keeps them up at night and how they view their role within the company gives us invaluable intelligence about both macro and micro business trends.
* The KF1000 is a proprietary database of CFOs at the top 1,000 US companies by revenue that Korn/Ferry follows
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The survey revealed that the CFO role is evolving from a strictly financial management position to a mix of financial management and operations, supporting the claim that CFO talent should actively pursue career growth opportunities outside of traditional accounting and finance roles. In addition to professional considerations, the operations function has shifted into focus as the number one investment for CFOs with cash on hand. The emphasis on operations further underscores the idea that CFOs need to understand how to cultivate existing company assets—technology, employee talent, intellectual capital—to gain a competitive edge.
75.3% of CFOs said they are being asked to take on more operational responsibility
How CFOs Plan to Spend Cash on HandCFOs Become More and More Operational
24.7%
75.30%
More Less No Change Acq
uisitio
ns
Stock r
epurc
hase
s/buy
back
Shareh
older
dividen
ds
Inves
tmen
t in op
eratio
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owth
initia
tives
Do not
plan on
spen
ding c
ash o
n han
d
Do not
have
cash
on ha
nd to
spen
d
80%
60%
40%
20%
0%
RES
PON
SE P
ERC
ENTA
GE 57.6% 57.6% 60%
80%
3.5% 5.9%
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In this brave new business environment, where CFOs are emerging from a period of sustainability into one of growth, the survey showed that anxiety around revenue growth and whether they possess the talent to achieve the organization’s goals remain high. This fear factor may be underpinning the belief that, should a CFO leave his/her company today, an external hire would be brought on to succeed said incumbent. While uncertainty remains pervasive, there is a silver-lining in the use of predictive analytics, which, according to the survey, will help give CFOs more data supported hypotheses and provide guidance during times of difficult decision making.
49.40%
31.80%
8.20%8.20%
49.4% of CFOs said that, if they left their company today, an external hire would be brought on to replace them
Internal promote External hire Do not know
44.70%
Up to 25
% incre
ase
25% to
50% in
creas
e
50% to
75% in
creas
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75% to
100%
incre
ase
none
of th
e abov
e
60%
40%
20%
0%
INC
REA
SE
49.4%
8.2% 8.2%2.4%
31.8%
44.70%
Rising
pressu
re to
spen
d
liquid
cash
on han
d
Increa
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egula
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mate
Cost man
agem
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Reven
ue grow
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Achiev
ing quart
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goals/quart
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umbers
Manag
ing en
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Talen
t to ac
hieve
the
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goal
60%
40%
20%
0%
SALE
S
4.7%
37.6%
16.5%
51.8%
24.7% 24.7%
47.1%
5.90%
44.70%49.40%
CFOs Plan to Increase the Use of Predictive Analytics and Big Data
Many Restless Nights From..
How Will a CFO Be Succeeded?
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The survey revealed, counterintuitively, that CFOs are less concerned about the impact of banking regulatory changes. Alternatively, the majority of CFOs agree that the Affordable Care Act will have an impact on the company’s bottom-line. Respondents also feel that a global set of financial reporting standards will not be put in place.
Not at all A little Some A lot Do not know
Yes No Do not know
Yes No Do not know
4.70% 3.50%
40.00%
35.30%
16.50%
80.00%
9.40%
10.60%
80% of CFOs do not believe that a global set of banking regulations will gain momentum this year
44.70%
67.1%
9.49%
23.5%
Will the affordable care act impact bottom-lines?
Will funding be negatively impacted by banking regulations and Basel III?
A global set of financial reporting standards will not gain momentum
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Hyper-aware of what it is like to operate in a heavily regulated environment, a super majority of CFO respondents do not agree that the only way to increase female board representation is through a legal sanction, despite the success in increasing female board participation seen in some European countries that enacted a gender-equality law.
The survey showed that the vast majority of respondents do not serve on the board of another public company. While there are a number of factors contributing to this anomaly, the two most likely causes are that CFOs have not been asked to serve—as former CEOs still dominate board make-up —and CFOs may not have the green light from their CEO to serve on a board. However, as certain areas that require the rigor and technical experience of CFOs become more important, this number will likely augment.
96.5% of CFOs do not think the only way to significantly increase the number of women sitting on boards is through a legislative mandate
75.3% of CFOs do not serve on the board of another public company
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Key contacts: Financial Officer Center of Expertise
Joshua Wimberley is a Senior Client Partner and Lead Partner for the Financial Officer Center of Expertise, North America. In addition, he is an active member of the Firm’s Global Financial Services Market.
Pascal Gibert Lead Partner, Financial Officer Practice- EMEA Paris
Margaret Lee Lead Partner, Financial Officer Practice- Asia Pacific Hong Kong
Jorge Maluf Lead Partner, Financial Officer Practice- Latin America Sao Paulo
Bryan Proctor Senior Client Partner, Financial Officer Practice Chicago
Carroll Leatherman Client Partner, Financial Officer Practice New York
Chuck Eldridge Senior Client Partner, Financial Officer Practice Atlanta
Dave Westberry Senior Client Partner, Financial Officer Practice Dallas
Ellen Williams Senior Client Partner, Financial Officer Practice Stamford
Kristine Langdon Senior Client Partner, Financial Officer Practice Boston
Marc Létourneau Senior Client Partner, Financial Officer Practice Toronto
Mark Mulvanerty Senior Client Partner, Financial Officer Practice Philadelphia
Paula Park Senior Client Partner, Financial Officer Practice San Francisco
Peter Santora Senior Client Partner, Financial Officer Practice Newport Beach
Barry Toren Principal, Financial Officer Practice Philadelphia
Eve Nam Principal, Financial Officer Practice Newport Beach
John Petzold Principal, Financial Officer Practice New York
Erin Evans Global Knowledge Manager, Financial Officer Practice Boston
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